Article by Doug Black, Q.C., Bill Gilliland,
Alex MacWilliam, Miles Pittman, Anne Calverley, Rich Miller, John
Hurley, Cyrus Reporter, Ron Stuber and Jerry
Oil Sands News
1. Imperial Oil is forging ahead with its
proposed Kearl oil sands mining project. $500 million has been
spent on Kearl with contracts having been awarded for engineering,
procurement and construction management services. Phase 1 of the
Kearl surface mining operation northeast of Fort McMurray added a
total of 800 million boe to proved reserves for Imperial Oil in
2. TransCanada is continuing to progress its
Keystone pipeline to transport bitumen from the oil sands to the
Gulf Coast. It has completed approximately 40% of the engineering,
procurement and construction activities for the initial phase.
TransCanada has also been receiving additional requests for service
on the Keystone pipeline due to the delay of upgrader projects in
Alberta. Shippers have been requesting that TransCanada stick with
its schedule on Keystone and not delay the project, emphasizing
that they have volumes they want to ship.
1. UTS announced it has identified two new
potential oil sands projects, Equinox and Frontier, after
completing a three-year drilling program. The projects would
include development of 7 leases about 100 kilometres north of Fort
McMurray. UTS has a 50% working interest in these projects, with
Teck Cominco holding the other 50%.
East Coast News
3. Repsol YPF SA has reached an agreement to
buy EnCana's natural gas production from Deep Panuke, offshore
Nova Scotia. Production of the natural gas is set to begin in the
fourth quarter of 2010. The contract takes effect immediately, and
the terms of the agreement are confidential.
4. An hydraulic frac completion program on a
500 meter shale oil and gas area on a well in New Brunswick will be
conducted by PetroWorth Resources. This completion program will be
based on the outcomes of an assessment of the oil shale, the shale
gas and the hybrid tight sand/shale of the Albert formation in the
West Coast News
5. TransCanada has received commitments for
firm gas transportation contracts from shippers on the pipeline
from the Montney Groundbirch area of north-eastern British
Columbia. Volumes are expected to reach 1.1 bcfpd by 2014. The
proposed $250 million pipeline is expected to begin service in the
fourth quarter of 2010, subject to regulatory approvals. The 77 km
pipeline will run from the Montney Groundbirch area of
north-eastern British Columbia and tie-in to TransCanada's
5. Canada Energy announced its first drilling
on the Moosebar Shale horizontal well on its Peace River Project in
northeast British Columbia. Canada Energy has 50,000 acres
(approximately 78 sections) in the Moosebar Shale formation Peace
River project. There was unstimulated natural gas flow from the
Moosebar Shale formation at the site of the drilling, while a
deeper coalbed methane well was being drilled.
Canadian Arctic News
The Canadian Center for Energy Information, the Canadian Gas
Association and the Canada West Foundation are advocating that
Ottawa begin discussions on a North Pacific Energy Security
Framework. According to the 3 groups, an agreement would allow for
all 6 countries (Canada, the United States, China, Japan, Russia
and South Korea) to develop Arctic resources, encourage investment
in energy and energy trade, focus on the impact of climate change
and co-operate on policies.
Alternative Energy News
2 biomass pilot projects in British Columbia have been granted
close to $5 million in funding from the British Columbia Bioenergy
Network. The recipients of the funding are Lignol Innovations which
utilizes biorefining technology to turn wood waste into fuel grade
bioethanol and biochemicals, and Nexterra Energy which develops
systems which turn wood waste into clean and renewable heat.
On the Horizon
The federal government has proposed significant amendments to
the Competition Act, along with certain changes to the Investment
Canada Act. These proposals would substantially alter the Canadian
merger review process and modify broad areas of Canadian
competition and antitrust law, as well as amend Canada's
foreign investment review criteria. The proposals are currently
being reviewed in the Senate, and could become law as early as the
end of March, 2009.
Doing Business in Canada: Practical Considerations for
FMC has recently updated our Doing Business in Canada
publication. The document provides a general overivew and practical
considerations on the establishment, acquisition or conduct of a
business in Canada.
Ontario's Ministry of the Environment and Climate Change continues to roll out its Climate Change Action Plan with its proposed GHG guide for projects that are subject to the province's Environmental Assessment Act.
The Imperial Oil refinery pled guilty to one offence for discharging a contaminant, coker stabilizer, thermocracked gas, into the natural environment causing an adverse effect and was fined $650,000...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).